I was wrong, Avaya is going private through Silverlake Partners.
Late Monday, private-equity firms TPG Capital LLC and Silver Lake Partners said they'll pay $17.50 in cash for each share of Basking Ridge, N.J.-based Avaya. The buyout price represents a 28% premium above Avaya's closing price of $13.67 on May 25, the last trading day prior to initial reports about a potential transaction.
Silverlake are fully valuing Avaya so it will be interesting what they intend to do to substantially increase value. I would speculate they would need to combine it with other aligned companies or they see a lot of cost that can be removed from it. We will have to wait and see.
Greg Royal is one of the original founders of Cistera Networks and has been the chief technology officer/EVP since 2001. He has more than 20 years of IT sales, marketing and management experience in New Zealand, Australia and the US. He also has significant experience in designing and deploying large scale IT systems including experience in financial services, government, education and retail.
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Avaya deal FAQ
What Avaya going private is all about.
Texas Pacific Group's less than stellar Paradyne buyout
When hearing the name Texas Pacific Group, what comes to mind is their less than stellar Paradyne buyout.
Where is Andy May these days anyway?
Brad Reese
http://www.BradReese.Com
Avaya to get carved up like a Thanksgiving turkey
In my opinion, Avaya will most likely be carved up into 11 or 12 subunits and then auctioned off to the highest bidder(s).
I hope they don't get split up
What would they split it into? What does Avaya do anymore besides VoIP and TDM?
The split of Avaya from Lucent was painful enough. Now that we're entrenched in Avaya VoIP and TDM (and we will never be able to get rid of TDM due to business requirements), getting split along those lines would cause us no end of pain. In fact, because one shop could service both worlds (and do so seamlessly) is why we chose Avaya over Cisco or Nortel.
jk
What the buyout means to me?
Their goal is to become a software oriented company. My company is knee deep in Avaya as with most of the enterprises out there, but I've had a serious grip with Avaya for the past year or so. Their "so called" new model, what they have done has given us nothing but headaches. They sent us to a business partner model and they no longer can supply us directly. This move has put us in a bad situation because we now have to go to business partners for everything and so far our experiences with business partners has been very less than stellar. We are a global company with close to 100 offices and we can't get help directly from Avaya. This is causing us to seriously rethink staying with them. So if nothing good comes of this buyout..Hello Cisco!
RE: What the buyout means to me?
You do know that Cisco sells primarily through distribution that way too...
Business Partner Experience
AVAYA is placing an emphasis on software development - who isn’t? Isn’t that the future of enterprise communication? In a world that demands more open architecture, the power is in the software and its’ features, not the hardware.
If you are struggling with a business partner - complain; or to use the industry term - escalate. If you can’t get satisfaction from the business partner, contact the AVAYA Channel Manager (they manage the business partner relationship). If you don’t know who that is, call AVAYA directly and start the ball rolling… The number is on their website. I’m not clear on whether your beef is with parts/product availability, technical service/support, design, sales, or all of the above; but before you go Cisco talk to AVAYA directly. Let them know that the relationship with the business partner isn’t a good fit and you are seriously considering taking your business to Cisco as a result. By the way, when you deal with Cisco, you are very likely going to be dealing with a business partner…
Avaya alternative
Hi Anonymous, I am the CEO of Blue-Wireless developers of 'SoftBX'. I only just came across your comment re the Avaya buyout so I understand you may have already moved on... We are on the market in Australia, New Zealand and S.E. Asia with our software-only VoIP platform 'SoftBX' which has recently beaten Avaya, Cisco and Nortel to a couple of major contracts here. We won on price, flexibility of our feature set and our hardware independence. The latter has appeared to be the most attractive to our customers as they are not 'locked in' to proprietary hardware. We can scale to any size configuration across a Windows network deployment. Take a look at www.blue-wireless.net
Buyout
When will we receive the 17.50 cash buyout?